Hatsun Agro's Q2 PAT up 3.6 %; margins contract

South based producer of milk and milk based products has declared its second quarter earnings on Tuesday, October 18 post market hours. Company has posted an increase in profits by 3.61 per cent to Rs 32.16 crore for the quarter ended September 30, as against Rs 31.04 crore in the year ago period.

Total revenue from operation has increased by a healthy 17.35 per cent at Rs 1000.9 crore compared to Rs 853 crore in the same period of the corresponding year. Despite improving on operational performance, company was not able to hold on to the margins, as margins have seen a slight contraction of 70 basis points to 9.09 per cent compared to 9.80 per cent on a yearly basis.

Company was able to successfully bring down its interest outgo by 12 per cent y-o-y to Rs 15.7 crore.

Hatsun Agro Product in a statement said that the company is planning to invest about Rs 850 crore during the year ending March 31, 2017 (FY 2017) and FY 2018 in capacity including commissioning of two new milk processing facilities and enhancing existing facilities in plant and machinery.

Shares of Hatsun Agro are trading with gains of close to 1 per cent at Rs 353.80 on NSE.